Banks to club home loans with funding for rooftop solar gear
Banks are set to bundle housing loans with rooftop solar installations as part of an effort to boost solar energy usage in the country. This move comes following the government’s push to revise and enhance these schemes. Lenders will also develop standalone products to support the government’s PM Surya Ghar Muft Bijli Yojana, a scheme aimed at providing free electricity to households.
In a recent meeting between the finance ministry, ministry of new and renewable energy, and banks, it was agreed that banks will link with the National Portal for Rooftop Solar to provide real-time data access to consumers and stakeholders.
We are expecting that through the Muft Bijli Yojana, around 90% of residents will opt for rooftop solar. Combining these schemes with housing loans at subsidised rates will help further expand its reach, said a government official. The official also mentioned that banks will actively participate in conducting awareness campaigns for the adoption of rooftop solar panels on a large scale.
Prime Minister Narendra Modi recently announced the launch of the new rooftop solar scheme, with a target of lighting up 10 million households and providing them with up to 300 units of free electricity. The scheme is expected to attract an investment of more than 75,000 crore.
Banks are already offering loans for solar rooftops at competitive rates as part of their Environmental, Social, and Governance (ESG) lending framework. While each bank has its own individual policy, we will further drive our engagement with small and medium enterprises to push towards the adoption of solar rooftops on their premises, added a senior bank executive.
The integration of housing loans with rooftop solar installations is expected to encourage more households to embrace solar energy, reduce their carbon footprint, and contribute towards a cleaner and greener environment.
This initiative not only aligns with the government’s commitment to increasing the share of renewable energy in the country’s energy mix but also supports India’s broader sustainability goals. It is a significant step towards achieving a more sustainable future, where solar energy plays a crucial role in meeting the energy needs of the nation.
By combining financial incentives and real-time data access, banks and the government aim to create a conducive environment for the widespread adoption of rooftop solar panels. This move will not only benefit consumers by reducing their energy bills but also contribute to the overall reduction of greenhouse gas emissions and dependence on non-renewable sources of energy.
With the launch of the new rooftop solar scheme, India takes a significant stride towards embracing clean and renewable energy solutions. The integration of housing loans with rooftop solar installations is a testament to the government’s commitment to promoting sustainable practices and ensuring environmental stewardship.
As banks join forces with the National Portal for Rooftop Solar, consumers can look forward to real-time monitoring and data access, making the transition to solar energy more seamless and efficient. The availability of affordable and accessible financing options further eliminates barriers and catalyzes the shift towards renewable energy sources.
Through these concerted efforts, India aims to become a global leader in renewable energy, setting an example for other nations to follow. The integration of housing loans with rooftop solar installations marks a significant milestone in this journey, as more and more households embrace the power of the sun to meet their energy needs.
